Shares of SK Hynix surged 9.2% to $1,425 on the Düsseldorf exchange this week, capping a multi-day rally that has added roughly $145 per share since June 12 as investors pile into what they see as the dominant supplier of memory chips purpose-built for artificial intelligence. SK Hynix Rides the AI Memory Supercycle to a Trillion-Dollar Club — But How Long Can Earnings Defy Gravity?
Shares of SK Hynix extended a blistering multi-day rally, hitting $1,425 on the Düsseldorf exchange — up 9.2% from the prior close and 11.3% from a week ago — as investors continue to reward the South Korean chipmaker's dominance in the specialized memory chips that power AI data centers. The question now: with the stock up more than 250% year-to-date, is the market paying a fair price for growth, or pricing in perfection?
• A Profit Machine Running on AI Rocket Fuel
SK Hynix posted record Q1 2026 revenue of 52.6 trillion won (~$35.5 billion), up 198% year-over-year, with operating profit of 37.6 trillion won at a staggering 72% margin.
Operating profit surged fivefold compared to the same period last year.
Nomura analysts project operating profits rising to 99 trillion won in 2026 and 128 trillion won in 2027 — numbers that, if realized, would make SK Hynix one of the most profitable chipmakers on the planet.
• The $1 Trillion Milestone May Already Be in the Rearview
SK Hynix's market capitalization surpassed $1 trillion in late May , and as of June 2026 it stands at roughly $1.12 trillion , making it the world's 14th most valuable company.
Analysts argue the valuation has actually gotten cheaper because earnings forecasts have risen faster than the share price. That gap between price momentum and profit upgrades is why buyers keep showing up.
• A Chip Shortage That Could Last Years Benefits the Incumbent
SK Group's chairman has warned chip shortages may persist until 2030 due to slow capacity expansion.
SK Hynix has already sold out its entire 2026 production capacity.
It commands a 57% share of the high-bandwidth memory market — the premium chips slotted into Nvidia's AI accelerators. The company is investing 19 trillion won (~$12.85 billion) in a new advanced packaging facility to expand supply, while also pursuing a U.S. stock listing that could raise $6.7–$10 billion to fund further AI-focused expansion.
• The Risk Nobody Wants to Talk About: Cyclicality Hasn't Disappeared Memory chips have historically swung between boom and bust. Analysts believe the current supply shortage extends to at least 2027 , but any pullback in AI capital spending by hyperscalers like Nvidia's customers could compress margins quickly from their current extraordinary levels. Investors paying today's price are betting the AI buildout is structural — not cyclical.